The New Machine Economy Powered by NFTs

If there’s one thing that has overwhelmed the universe aside from cryptocurrency, it is definitely NFTs. NFTs were a craze that swept the world between 2020-2021. While no one is sure what caused it, they are gaining popularity. The amount of money that is moving into and out of this market speaks volumes. This is confirmed by the fact that NFT volume increased significantly in Q3 compared to the prior quarter.

The digital traders, creators and investors have traded nearly $10B during the third quarter of 2021. That’s massive and an unthinkable figure. It’s no surprise considering the amount of digital content that has been sold. Till days, Beeple’s artwork remains the most expensive NFT sold, auctioning for $69M. Non-fungible tokens are not just for making money on digital artworks.

The concept of ownership and machine NFTs

NFTs promoted the idea of ownership in which one person owns an item. Of course, it’s non-fungible, which means it can’t be replaced by another of the same kind, unlike cryptocurrencies. However, it is difficult to know if you have an NFT representing an item. Since there is no tangible contract paper where your signature can be seen, how does one determine who owns a digital item?

Let’s take this example; you fancy buying a car and you have identified your choice. You will receive some paperwork once you have completed the payment for your vehicle. This paperwork proves that you own the vehicle. NFTs use the same concept, only that the contract isn’t physical but digital. The contract isn’t rooted in government signatures/stamps but in a code stamp.

It is possible to independently verify that the code stamp has been valid and authentic. This person can be sure that the NFT belongs to them once they have been verified. You will need to contact the government or central authority to confirm ownership. This is both time-consuming as well as energy draining. This is Machine NFTs’ unique concept of ownership.

The contract of machine ownership is called Machine NFTs. Just like digital content, anyone can verify this ownership independently, so there’s no form of centralized authority. Peaq is a protocol which focuses specifically on machine ownership. It’s based on the Polkadot eco-system. Why own machines, though?

It’s a well-known fact that machines are the future and on course to replace humans as the elementary workforce. The future will see cars become fully autonomous, and robots work in offices and businesses. How will this affect humans? While humans will lose their jobs, they may be able to make a profit when they own the machines. Peaq Network aims to achieve this. The Peaq Network aims to create a forum where all stakeholders can participate, including manufacturers and owners.

Machines aren’t really the problem. The problem is in not taking advantage of the chance to have and control machines. These machines can be thought of as human extensions. The Machine NFTs are looking to establish a machine economy in which individuals have a share of the machines that drive it. The machines will continue to be improved and maintained by these individuals. The economy may be able to subsidize machine purchases and NFTs will allow everyone to earn.

Internet of Things and the Economy of Things The Economy of Things

Corporations and governments control the Web2 machines, also called Internet of Things. This centralized entity can access all of the money it generates, as well as any other limited amounts. Aside from that, any machine that wants to render service must rely on these entities, which puts someone’s safety, privacy, functionality, and availability at risk.

The Economy of All Things eliminates these restrictions, according to peaq. Web3 is a combination of Web1’s decentralized capabilities and Web2’s advanced functionality to solve the issues in the former. Web3 allows machines to work faster, save energy, and do more important tasks. Web3 allows individuals to own their items and make them. They make a profit at the end of it all. Peaq is clamoring for this.

Peaq’s Innovative Approach

Peaq’s mission is to create a new machine economy through the use of Web3 potentials. You can gain hugely without taking any risks, and also own your machines with peaq tokens. These tokens allow you to purchase Machine NFTs. According to the network, it would open up the possibilities of machines. The first protocol, peaq aligns the incentives of all stakeholders through machines that offer services and create a loop to value.

The loop of value includes stakeholders who provide liquidity, and get their yields. Machines must have earned revenues by rendering services. Decentralized apps will be used by machines to provide services and revenue to the network. The network will also leverage DeFi in order to support new SSIs.

Peaq creates an economic future in machines. Leveraging the protocol will help generate profits. These NFTs, or machine-realized machines, are guaranteed to bring in a steady stream of revenue if the machines keep rendering services.

Get more Crypto News at CFX Magazine